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Should you name separate financial and medical powers of attorney?

On Behalf of | Sep 3, 2022 | Estate Planning |

Advanced care planning includes naming individuals with powers of attorney who can make important decisions on your behalf if necessary.

Creating documentation regarding power of attorney is important if you want trustworthy people overseeing your interests. You should consider designating separate people with financial and medical powers of attorney.

Financial power of attorney

Financial power of attorney grants someone the ability to manage your money if you cannot. A person with financial power of attorney can pay bills on your behalf and oversee your accounts. They can even manage your real estate holdings. Sometimes people grant financial power of attorney on a temporary basis. You can designate a relative or loved one as your financial power of attorney. However, you can also choose a trustworthy financial professional such as an adviser or accountant to manage your affairs.

Medical power of attorney

If you lack the capacity to make crucial medical decisions, the person you named as your medical power of attorney can make them for you. You cannot designate your health care provider with medical power of attorney. Otherwise, any adult who is competent qualifies. Your healthcare provider can consult the person with medical power of attorney if you are unconscious or under anesthesia. You should choose someone who understands and respects your values regarding health and end-of-life care.

Naming different powers of attorney for financial and medical decisions gives your more control over your interests. Review your option and ensure that the people you designate with power of attorney are suitable for the task.